So it's no wonder then, that in our Q&A on the state of the social media industry, Buddy Media CEO Mike Lazerow called Tumblr "the next great Internet business waiting to happen."

Here's what he had to say:

BI: What do you make of Tumblr's suddenly huge popularity?

ML: Tumblr is a massive business. They're the ultimate story in scaling without a lot of money or people. They've built the #2 social media site behind Facebook, according to Nielsen.

Tens of millions of people are running their online identity through Tumblr.

If you look at where young people, and young women are, Tumblr dominates. Pretty much every high school kid is decorating their Tumblr.

Monetization follows engagement, so I assume they'll do well. We have a lot of clients who invest heavily in their Tumblr site. It's an easy way to get the message out there.

It's still early. Tumblr really blew up late last year. It's giving Twitter a run for its money. With 600 million minutes per month spent on the site, this is the next great Internet business waiting to happen, I think.

BI: It feels like they can watch Facebook, and do what works. Does that sound accurate?

ML: They're both following and leading. The Facebook timeline product, letting you highlight things on your timeline, and add apps, is a nod to Tumblr. That's what Tumblr is. The whole idea of Tumblr is really a digital scrapbook for people, and so people have reacted to that.

BI: Do you think Tumblr can reach the type of scale Facebook has reached?

ML: No. They're playing in a different league. It's like pre-school football versus the NFL. They're executing at such a different level of innovation.